Greenlam Industries Limited has notified stock exchanges about a search operation conducted by the Income Tax Department at its facilities under Regulation 30 of SEBI listing regulations.

Search Operation Details

The Income Tax Department conducted the search under provisions of the Income Tax Act, 1961 across multiple locations of the company. The operation covered the following facilities:

Company's Response and Cooperation

Greenlam Industries emphasized its full cooperation with the Income Tax officials throughout the search process. The company provided comprehensive responses to all clarifications and details sought by the department officials. This cooperative approach demonstrates the company's commitment to regulatory compliance and transparency.

Business Operations Continuity

Despite the search operation, the company maintained normal business operations without any disruption. This continuity indicates that the search did not impact the day-to-day manufacturing and commercial activities of Greenlam Industries.

Regulatory Compliance and Future Disclosures

The company has assured stakeholders of its commitment to comply with all legal obligations. Greenlam Industries stated that it will make further disclosures regarding this matter if required by regulatory authorities. This commitment aligns with the company's obligations under SEBI listing regulations and maintains transparency with investors and stakeholders.

The notification was signed by Prakash Kumar Biswal, Company Secretary and Senior Vice President-Legal, and communicated to both BSE and NSE as per regulatory requirements.

Greenlam Industries Limited held its Q3 and 9M FY26 earnings conference call on January 30, 2026, providing detailed insights into the company's financial performance and business outlook. The call was led by Managing Director and CEO Saurabh Mittal, along with CFO Ashok Sharma and VP Finance Samarth Agarwal.

Financial Performance Overview

The company reported consolidated revenue growth of 17.33% year-on-year to ₹706.37 crores in Q3 FY26, compared to ₹602.04 crores in the previous year. However, the company faced profitability challenges, posting a net loss of ₹0.59 crores against a profit of ₹12.54 crores in Q3 FY25.

For the nine-month period, consolidated revenue grew 15.90% to ₹2,188 crores from ₹1,888 crores, while net profit declined 77% to ₹15.50 crores from ₹66.90 crores in the previous year.

Segment-wise Performance Analysis

Laminates & Allied Products

The core laminates segment demonstrated steady performance with revenue growing 8.10% to ₹562 crores in Q3 FY26. EBITDA margin improved by 100 basis points to 14.50% year-on-year. Production volume stood at 5.08 million sheets with 83% capacity utilization, while sales volume was 4.75 million sheets.

| Parameter | Q3 FY26 | Performance | | ---: | :--- | | Revenue | ₹562 crores | +8.10% YoY | | EBITDA Margin | 14.50% | +100 bps YoY | | Production Volume | 5.08 million sheets | 83% utilization | | Average Realization | ₹1,143 per sheet | - |

Plywood & Allied Products

The plywood segment, including decorative veneer, engineered doors and floors, reported revenue of ₹90 crores in Q3 FY26, up 9.50% from ₹82 crores. However, the segment continued to face losses with EBITDA loss of ₹13.30 crores for the quarter.

Panel & Allied Products (Chipboard)

The chipboard business showed sequential improvement with revenue of ₹54.20 crores in Q3 FY26, growing 13.30% quarter-on-quarter. The segment reported reduced EBITDA loss of ₹3.20 crores. Production volume was 30,028 cubic meters at 41% capacity utilization.

Business Updates and Strategic Initiatives

Brand Architecture Streamlining

Management announced a significant restructuring of the brand portfolio into two main brands:

• Greenlam Brand: Carrying Greenlam Laminates, Greenlam Facade, Greenlam Sturdo, and Melamine Chipboard
• Mikasa Brand: Including Mikasa Laminates (formerly NewMika), Mikasa Plywood, Mikasa Veneer (formerly Decowood), Mikasa Flooring and Doors

This streamlining aims to enhance operational efficiency and increase brand value through focused marketing investments.

Expansion Progress

The brownfield expansion at the Naidupeta plant for laminate manufacturing capacity of 2.0 million sheets per annum remains on track, with commercial production expected to commence in Q4 FY27. The company has been recognized as the largest exporter of laminates for 16 consecutive years.

Market Challenges and Outlook

Management highlighted several challenges affecting Q3 performance:

• Sequential revenue decline of nearly ₹100 crores from Q2 due to seasonal factors
• Slower domestic demand than expected
• Export shipment postponements in December affecting European and UK markets
• Currency depreciation impact on imported raw materials

Working Capital and Financial Position

The company improved its working capital cycle by 9 days to 58 days compared to 67 days in Q3 FY25. Net debt stood at ₹1,010 crores as of December 31, 2025.

Future Targets and Expectations

For FY27, management expects:

• Chipboard capacity utilization to reach 55-60%
• Plywood capacity utilization to improve to 55-60% from current 35%
• Both plywood and chipboard segments to achieve EBITDA breakeven
• Q4 FY26 performance to align with the targeted 18% top-line growth

The management expressed confidence in Q4 recovery, citing traditional seasonal strength in the fourth quarter and improving business momentum as the quarter progresses.